Yes it is an earthing strap, that one looks like it should go in the bin. Go and get a couple of new ones from your local parts store and fit one between the chassis rail and the front suspension crossmember and another one to the engine and the chassis. Not really important where they go to as long as they are fitted and provide good earthing continuity.
You can see on the little light there appears to be a wiring connection. The sidelight also has a similar connection. Are these grounds? Are they connected together since they are close to each other?
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Joe
Captain, USMC (Retired)
1965 Jaguar 3.8 Manual w/OD & RHD "Miss Kitty" 1B54554DN
2003 Dodge Durango SLT
2001 Dodge V10 2500
2017 Load N Go 24' car hauler
Joe I presume you have an auto car, if so the third wire that looks like it's been cut short should go to the anti-creep switch that is controlled by the throttle lever. I dont have any photos of it as I converted my car to manual. You should have a large solenoid inline with the brake pipe under the car running along the chassis rail unless a PO has removed it that is energised by the switch holding a line lock to the rear brakes when stationary.
You are right as far as the large indicator lamp with the brass connector being an earth. The small side light is earthed via the bulb holder and nothing is attached to the fitting itself.
Nigel is presuming the car is Auto but from your signature Miss Kitty is a Man/OD so I doubt the third wire is for the Anti Creep. It might be for the Otter switch which from memory is the only other wire attachment around that area although mine comes from the front of the loom and is seperate from the two wires that go to the choke. The otter switch is on top of the inlet manifold by the thermostat housing and has a cover with three bolts in a triangle and then the wiring plug sits on the top of it.
I go with Nigel on the light wiring being the earth.
Rob.C. P1B8973BW
1968 S Type 3.4 Auto. Old English White.
1993 Yamaha FJ1200 Yellow
1966 Ford Anglia 1760 cross flow (still being built)
2012 Old English sheep dog. Grey and white. http://torbayweddingcarclub.co.uk/?page_id=57